1. Field
The present disclosure generally relates to the field of financial transactions, and more particularly, to systems and methods for preauthorizing check transactions.
2. Description of the Related Art
Many financial transactions involve situations where the actual purchase amount is not known in advance. For example, when filling up at a gas station, the total volume (and thus the cost) is usually not known. In such a situation, it is common for the merchant to require some form of payment verification before dispensing of goods or service.
Cash, credit card, and debit card are examples of forms of payment where certain amount of fund is held until the actual purchase amount is determined and processed. Cash can be held by the gas station attendant until the filling is complete. Credit card, for some amount, can be held from the credit card account's line of credit. Debit card, for some amount, can be held from the available funds in the corresponding account.
Many merchants that offer various payment options also subscribe to a financial transaction processing service. Such a service typically receives information about a given transaction, and determines whether the transaction should be authorized or declined. Generally, merchants and customers typically want the service to process financial transactions quickly. For merchants and the check processing service, such desire for quick processing needs to be balanced with concerns about factors such as likelihood that the transaction will be successful.